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]K ]E P« JE ]F HJ ]L O ]P = ]!^J[ I ]L, ]L, ]E ]R 

WlKN IV. WOHI.I.EBKN&ASSE 5 



Vienna, 25th of ^lent. 1^28 



-Richard 1, Tr r e g g Esq, 
0.0, S. O-anesan. Pu'olisber 



"^ r i p 1 i c a n e_ 
IT adit as 



Dear '^ir, 

thanl: you ever so nuctji for tshe nost j.nt ere sting 
"bool::" Tilconomics of IChaddar'' you have had the f^reat ]:inclness of semding 
to rae. 

I ba'je been readi]ig 570ur thoroughly instruct i'va9 
study with the ]:eenest interest and it has given lae a great deal of ■vee- 
ry valua'ole inf oriaat ion Qn tl^e econoiiio ')asis of the Indian Hone-^.ule 
movement and its iiossToilities. 

Thanlcing you again for your great liindness,! 
am, dear 3ir, 

Yours very truly. 



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4 



MUSEUM OF FINE ARTS 

BOSTON, MASSACHUSETTS 



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Must India Be Industrialized? 

** \/TR- GANDHI seems to be, in effect, a great industrial 
ItX engineer," This is the conclusion reached by Richard 
B. Gregg, an American writer, after two and a half years spent 
in studying the situation in India and recorded in Economics of 
Khaddar."^ This volume will come as a great surprise to those 
American readers who have regarded Gandhi's economic program 
as a vain effort to scrap machine industry and revert to hand 
production. Mr. Gregg does not maintain that Gandhi's ideas 
would prove practicable in the United States or in Europe but 
that under the conditions which actually prevail in India today they 
are scientifically sound for that country. 

The chief factor to be considered is the tremendous volume 
of unemployment in India. The number of rural workers unem- 



^—p— ^ Published by S. Ganesan, Madras. Copies may be secured from The 
/J World Tomorrow for $0.85 paper cover. 



ROW, OCTOBER, 1928 

ployed for three months each year is equivalent to more than 
Lenty-six million workers idle for the entire year. It is obvious 
that this enormous army of unemployed could weave an almost 
incalculable quantity of khaddar, that is, hand-woven cotton cloth 
made of hand-spun yarn, if it could be enUsted behind G^ndh.s 
program. At the incredibly low rate of two and one-third cent 
\ per day, these unemployed could earn nearly fifty per cent more 
' than the total annual revenue of the Central Government of India, 
twice as much as the value of the total ^"""^1 '7°,'"^° ."'"■ 
ufactured cotton, and ten times as much as India s total ex- 
penditure on education. , , 

Mr Gregg summarizes the advantages of decentralized hand 
industry in India as follows: low cost of installation, low over- 
head, low maintenance, little storage, slight transportation cost 
secu ity of employment, increase in India's self-reliance. The 
author has considered various objections to the scheme and has 
it d an abundance of relevant evidence. This volume .indis- 
pensable to a clear understanding of why Gandhi is seeking to 
substitute hand industry for machine production. 






/, 



HVIDE Hus, 

HeADINGTON HfLL, 

Oxford. 



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iDERIC 
LOYALL A. OSBORNE I r'/nVe" ou" PO NT 



ARLES CHENEV 

ntMHERT F. PERKINS 

„,^„ FRED 

EORGE S. Hfl 



HGNUS W. ALEXANDEF 



National Industrial Conference Board, inc 

247 PARK AVENUE. AT 46TH STREET. NEW YORK 

AMERICAN ELECTRIC RAILWAY ASSOCIATION AFFILIATED ORGANIZATIONS 

==:j=si-iiSIE»:^?=- :EEIiHr=E-""--=™" iSSi;Hi=-""-™ 

TOBACCO MERCHANTS ASSOCIATION OF THE UNITED <!T.Tr 
ASSOCIATED INDUSTRIES OF MASSACHUSETTS .,„ ,.,„„,,, " ""^ 

ASSOCIATED INDUSTRIES OF NEW YORK STATE. INC u,, .1 "■ "' ^- *''"^ 

ILLINOIS MANUFACTURERS ASSOCIATION MILITARY INTELLIGENCE DIVISION. U. S. ARMY 

MANUFACTURERS ASSOCIATION OF NEW JERSEY R,m?^'!'!fc "„"*"" ^"^^ "• ^- ^""^ 

THE MANUFACTURERS ASSOCIATION OF CONNECTICUT INC BUREAU OF ORDNANCE. U. S. NAVY 



February 11, 1929, 



PLEASE ADDRESS REPLY TO 

NATIONAL INDUSTRIAL CONFERENCE BOARD, Inc. 

ATTENTION OF THE UNDERSIGNED 



Mr. Richard B, Gregg 
c/o J/irs. A. P. Bemis 
Chestnut Hill 
Massachusetts 



Dear I'Ir. Gregg: 



Mr, Bemis some time ago sent rae a copy of your book v/ith 
the suggestion that I might read it and that you might find an op- 
portunity to call. He also suggested that if you were not able 
to be in Kew York soon that I had better return the book to you 
direct. 

I am sending it under separate cover and want to express 
ray sincere appreciation of the opportunity of reading it, I am 
really sorry that I have to return it, for I v^ould very much like 
to have a copy of it and would be pleased to know how I could ob- 
tain one, I found it a most impressive and convincing study of 
a fundamental economic problem that confronts not only countries 
like India but many others, Y/hile I am not sufficiently familiar 
with the special conditions that prevail in India to judge how cor- 
rect your analysis of the situation in that country is, the argu- 
ment from the data you present and from the general considerations 
you bring to bear upon it is most persuasive. The book is a most 
valuable contribution to a better understanding not only of condi- 
tions in India but of certain problematical tendencies in indus- 
trial civilization generally. I wish very much that the book 
might be brought to public attention more widely. 

Yours cordially, 
VJ:DG Chief Economist* 




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which fol- 

, 1910, and 

intelligent 

ss is P. O. 

Adamic. 



hur at any 
whom they 
to me will 
ice will be 
t Howe. 



careful and 
:e a diflScult 
1 his reputa- 
s. His nat- 
S it through, 
more in the 
ng. For the 
to be always 

truths from 

jletion of the 
the path of 

1 understand 
e not troub- 
he said: 

lished lately 

; sum as to 

To that I 

the electrical 
for less than 

ts and spread 



If 

: held at the 
Street, New 
the Young 



Circle League of the Workmen's Circle, the Young People's So- 
cialist League and the Rand School. This gathering has been de- 
signed to give the young people a chance to speak for them- 
selves. Among the speakers will be a very few adult leaders, 
but nearly all of the discussion will be carried on by persons 
under the age of twenty-five. The public is invited. Sessions 
will open at three o'clock on the seventh and at eleven on the 
eighth. William E. Bohn, 

New York Citv , Educational Director. 

The Conscription of Wealth 

CiR: Duff Gilfond, in "The New Conscription" (The New 
Republic, September 25), apparently accepts the statements of 
Past Commander Spafford of the American Legion that the con- 
scription of wealth for war expenses is impossible, being forbidden 
by the Constitution. While it is far better to assume that the 
Kellogg Pact renouncing war will be observed than to make plans 
for future wars as if there were no such covenant, nevertheless 
the truth regarding the conscription of wealth should be made 
clear. 

In principle no one who upholds the drafting of men for the 
job of killing fellow men can object, with any show of reason 
or decency, to the drafting of wealth to foot the bills. "Any 
future policy of conscription should be inclusive, applicable in 
terms to the entire personnel and the entire wealth of the whole 
nation," said President Coolidge in an address at Kansas City 
in 1926. But he did not state how it could or should be done. 
Duff Gilfond is sure that it would not be effected by the Capper- 
Johnson Bill. 

The fact is that the conscription of wealth for war-costs raises 
no constitutional question, requires no abandonment of democracy 
in favor of dictatorship, no fixing of prices by dollar-a-year men. 
One simple measure will avail: Let war be paid for by taxation 
rather than by borrowing. Let tax receipts take the place of bonds 
in time of war. Government would thus show no more tenderness 
to property than to human life. 

It is the almost universally accepted theory that by means of 
bond issues the burden of paying for a war is passed on to future 
years, perhaps generations. This is sheer nonsense, since an army 
cannot be fed on wheat that will grow thirty years, or even one 
year, in the future. The economic reality of the matter and the 
actual working of the bond system are clearly set forth by a high 
authority, none other than Secretary Mellon, who said in 1924: 

The question of how rapidly the public _ debt shall be 
liquidated is not a question of what proportion of the cost 
of the war shall be shifted to future generations. A domestic 
debt is simply a liability of the people to pay the group hold- 
ing government securities. From the viewpoint of the coun- 
try as a whole the war was paid for when it was fought. 
The equipment, munitions, food, clothing and all other mate- 
rials and supplies necessary for carrying on the war had to 
be produced before they could be utilized. If the war had 
been financed entirely through taxation, as some suggested at 
the time, or the supplies needed by the government had 
simply been commandeered and not paid for, it can readily 
be seen that the whole burden of the war would have been 
borne at that time . . . The financing of the conflict in part 
by loans was simply an arrangement under government super- 
vision whereby those who were in position to do so could 
pay more than their proper proportion of the cost and be 
reimbursed later with interest by those who were not m a 
position at that time to meet their proper proportion under 
the tax system without too great sacrifices and hardships. 
What constitutes an asset to the one group in the form of 
government obligations is in effect an equal liability on the 
other group in the form of a tax lien on their future earnings. 
The government is simply an intermediary or agent who 
collects from the debtor and pays the creditor. 
Mr. Mellon thus justifies war bonds as affording temporary 
relief' to those unable at the time to pay their "proper propor- 
tion" of war expenses, while giving such persons the privilege 
for the rest of their lives of making good the deficiency when 
they pay their taxes. His statement of what actually occurs when 
bonds are issued cannot be questioned. But one may question 
this very rich man's opinion, so frankly expressed, that the process 



^ 




he describes distributes the burden of war costs in the "proper 
proportion" as between the richer and the poorer classes. Those 
who buy bonds do it presumably "without too great sacrifices and 
hardships," as it is voluntary. Suppose the same amount were 
collected by taxation, not from the poor, but from those very 
bond-buyers and others of like means who might have shirked 
their "patriotic duty" to buy. In this way the poorer class would 
be relieved not merely for the time, but permanently. And would 
the richer class be paying more than its "proper proportiofl"? I 
trow not. The poorer people provide most of the cannon fodder. 
Let the well-to-do, those who have the means which would enable 
them to buy bonds, pay the war bills. In other words, instead of 
issuing bonds, let the government issue only tax receipts. This 
would be the conscription of wealth, a legal and practicable 
procedure, as well as reasonable and just, the adoption of which 
would be forced by public opinion if the public once understood 
the operation of war bonds as Mr. Mellon has explained it. If 
such a policy should be enacted into law, our country would not 
engage in war again. 
Newton Centre, Mass. Henry W. Pinkham. 

The Athens Peace Conference 

OlR: The work of the Twenty-seventh International Congress 
of Peace, which opened its deliberation on October 6, is now 
completed. It took place in the capitol of the Greek Republic with 
the distinction of holding its first session in the chambers of the 
Hellenic Boule (Greek Parliament), and its last at Delphi. Under 
the presidency of M. Alexander Papanastasiou, former Prime Min- 
ister of Greece, the delegates of the Congress discussed the prac- 
tical aspects of the Kellogg-Briand Pact, the question of arbitra- 
tion, the possible confederation of Europe, and other timely topics 
on problems of minorities and reparations. 

It is strange, however, to note that the American press which 
devotes so much space to subjects of international peace, has this 
time failed to inform the American public of the plans and 
deliberations of the above-mentioned Congress. What is more sur- 
prising, several peace societies to which the writer applied 
for information had little or no information about the Interna- 
tional Peace Congress that met at Athens. 

From all appearances, this Congress should be considered as a 
significant international event in promotion of world peace. M. 
La Fontain, the Vice-President of the Belgian Senate, who acted 
as chairman of the Congress, declared with the close of the work: 
"We depart from Athens with the best of impressions, and with 
the conviction that idea of world peace has been strengthened." 
It was the first time that this Congress of Peace had met in 
Eastern Europe. And it b of special interest that it met in 
Athens. Wars in the Balkans and the Near East have been con- 
sidered as chronic. Yet, since the War, the idea of peace has been 
taking root in the national mind of the most progressive states 
in this part of the world. Doubtless the deliberations of the 
recent Congress will further stimulate this movement. As a matter 
of fact, we read in the Greek press that steps are being taken 
to organize a Balkan Peace Congress which will meet in 1930, 
at Athens. This Congress will represent all the States in the 
Balkan Peninsula, including Turkey. 

With regard to Greece, the question of peace Is now a well 
defined national policy. Eleutherlos Venizclos, the Prime Minister 
of Greece, since coming back to power a year ago, has made 
weighty and frank declarations on the subject of peace. He re- 
turned from his recent European visit in time to address the 
Congress and reassure the world of his earnest efforts for peace. 
The comments of the Greek press with regard to the meeting of 
the International Peace Congress in Athens reflect the sentiment 
of the Greek people who are now actively engaged in favor of 
permanent peace. Evidential are the following fates, as given 
to me by The North American Committee of Friendship and 
CoSperation with Greece. Not long ago the Board of Education 
in Greece initiated an essay contest in all Greek schools on the 
topic of world peace; the schools have also been requested to add 
to their curriculum courses which would deal with international 
relations with emphasis on world peace; perhaps even more sig- 
nificant is the fact that the Greek text books have been submitted 



to a clo: 
ing to CI 
It was 
national 1 
left for CI 
the grounij 
phil-pacifii 
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the recent 
sessions ofl 

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